Crude oil prices are currently getting support from demand concerns as tensions in the Persian Gulf region continues to brew.
The West Texas Intermediate crude oil futures inched 0.08 points or 0.13%. Crude oil barrels currently trade at $60.28, compared to its previous close of $60.20.
Brent oil futures, the benchmark for oil prices outside the United States, increased 0.20 points or 0.30%. Brent oil prices are presently trading at $66.72, compared to its previous close of $66.52.
Oil prices continue to be volatile against current geopolitical developments.
The present directional drivers for oil prices are the tension in the Persian Gulf, the storm forecast in the Gulf of Mexico, and the dovish testimony of Jerome Powell – the Chairman of the US fed.
Ship captains and sailors are anxious to sail in the chokepoint of the Persian Gulf, the Strait of Hormuz.
The Defence Ministry of the United Kingdom reportedly said three (3) ships from Iran were found leaving the Persian Gulf while attempting to intercept the passage of the British Heritage.
The British tanker, dubbed as the HMS Montrose, was said to be forced to move between the Iranian ships.
The spokesperson of the British Defence Ministry told reporters that Iran’s actions are contradicting internal laws.
A report has said the British ship was approaching the island of Abu Musa.
The said island is in undisputed territorial waters. However, the British Heritage remained on international waters.
Officials from the United Kingdom were quick to respond to the situation.
Jeremy Hunt, the British Secretary of State for Foreign and Commonwealth Affairs, said that the situation will be closely monitored.
Penny Mordaunt, the Defence Secretary of the UK, urged Tehran to ease the situation.
The Armed forces of the Islamic Revolutionary Guards have denied the UK’s allegations.
What happened to the UK and Iran?
The relationship between the United Kingdom and Iran strained after the attacks in June.
Britain accused Iran to be the head of the attacks on two oil tankers in the Persian Gulf.
Tehran had previously threatened Britain that it would retaliate for the apprehension of their local tankers.
Just last week, the Corps of the British Royal Marines have seized a ship from Iran in the Gulf.
The said ship was allegedly trying to carry oil to Syria, which is a violation of the sanctions imposed by the European Union in the Persian Gulf.
The tanker was spotted at Gibraltar, and officials from the Royal Gibraltar Police told the media that the Iranian ship was led by an Indian captain.
Officers and the captain of the ship were also arrested.
An official from Tehran commented on the situation saying that the arrest was “unnecessary.”
The Gibraltarian government is continuing the investigation regarding the seizure and has denied commenting on the matter.
UN Stepping In
General Antonio Gutierres, the ninth Secretary of the United Nations, warned countries about the tension in the Gulf.
General Gutierres calls for the utmost restriction in the Persian Gulf.
He also warned the countries involved that if there will be a new conflict, it will be catastrophic for the Gulf.
Farhan Haq, the Deputy Spokesperson for the General, explained General Gutierres’ statement.
Haq said that the United Nations is hoping that all parties will do their best to avoid conflict and will take steps to prevent tensions to escalate.
A reporter asked the spokesman if General Gutierres supports any country Linked to the conflict, Haq emphasized the General’s call to avoid further troubles.